A diplomatic row is brewing over the arrest of a Greek student on terrorism charges in Newcastle.

The Greek government lodged a protest after being told about the arrest of Charalombos Dousemertzis when he'd already been held for eight days.

Now European charity Fair Trials Abroad claims the row could hit the pockets of 12 British and two Dutch planespotters who were arrested outside a Greek air base two years ago.

Yesterday Dousemertzis, a 25-year-old Northumbria University student, pleaded not guilty to two offences under the Terrorism Act 2000 when he appeared before Bedlington Magistrates in Northumberland.

Stephen Jakobi, director of Fair Trials Abroad, said although the 12 Britons and two Dutchmen were acquitted on appeal last November, their bail money of about &#xA3;120,000 has not yet been returned and is four months overdue.

He said: "This issue was raised in the European Parliament again on Monday night when a meeting was sought with the Greek representative to put pressure on the Greek Government.

"Yet the British manage to put themselves on the back foot by failing to notify the Greeks this man had been arrested in Newcastle."

The eleven planespotters were convicted of spying but were cleared in November following an appeal.

The Greek Government is currently under extreme pressure to return the planespotters' &#xA3;9,000 bail money which is now four months overdue.

Greek Foreign Minister George Papandreou said his country's protests had been sent to the British Foreign Office and a formal complaint was also sent to Britain's envoy in Greece, for his failure to inform a senior minister about the Dousemertzis arrest.

Foreign Ministry spokesman Panos Beglitis said the government found out about the arrest through media reports.

Dousemertzis, a Greek national who has lived in Britain since 1995, faces two offences under section 57 of the Terrorism Act 2000.

As reported in later editions of the Chronicle yesterday, Dousemertzis pleaded not guilty to both allegations that he possessed articles which could be used for terrorism.

The alleged items are two rubber stamps in the shape of a logo used by the outlawed Greek group November 17 and a pamphlet about the organisation written in English.

Dousemertzis was arrested on February 25 at home in Simonside Terrace, Heaton, Newcastle and charged on March 1.

Police will not comment on the allegations but it is understood his alleged activities were not a danger to the public.

Magistrates adjourned the case to Newcastle Crown Court and remanded Dousemetzis in custody for a month.